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  • Yulp
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APR's for FHA and PMI Calculation

Just needed some information as to what fees are included in the APR .I  have locked my 30 year FHA at 5.000 but the APR is 5.7,which seemed a lot.When I asked my lender,he said APR is high as it included Prepaids,UFMI ,PMI and Origination.Just wanted to know if that was right.

Also,needed to know how PMI is calculated.My loan amount is $ 330,000 including UFMI but my PMI is around 150.However another friend of mine got a loan for # 340,000 but his PMI is $ 140 only.

So do I need to ask my lender if I am being over charged?
  • October 15 2009 - US
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Answers (5)

The APR is in line.

Your MMI Calculation is loan amount*.55%/12.  Keep in mind your loan amount likely includes the 1.75% in UFMIP.
  • October 15 2009
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You are putting down less than 5% and your mmi is correct. Your friend's mmi payment is consistent with a 5% or more down payment and also correct. This is why comparing what someone else has isn't relevant, too many variables.   
  • October 15 2009
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  • Yulp
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Thanks Andrew and Clay.After posting this,I read some articles and got a better understanding of MMI.

One last question.I have ead in lot of articles,that in order to remove MMI,the loan LTV should be 78%,it does not matter whether we have paid MMI for 5 years or not.

It also says that if I appraise my house and the appraisal is over 20% of base loan,I still cannot remove MMI.Are these facts true?
  • October 15 2009
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With an FHA loan you will have MMI a minimum of five years and will only be removed after 5 years if you pay downd the principle to 78%...The appraised value is irrelevent.
  • October 15 2009
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dittos. 
  • October 15 2009
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